The Islamic State has issued a vicious and detailed call to "lone wolf" followers to stab, shoot, poison and run over Australians at iconic attractions including Bondi Beach and the MCG.

The latest exhortation from the terrorist group follows the death in Syria of convicted Australian terrorist Ezzit Raad, who was jailed in connection with the 2005 plot to blow up the MCG and features as the latest jihadist poster boy in a new magazine.

In its first edition of Rumiyah published overnight, the terrorist group calls for lone wolf attacks in Australia in a manner of detail not seen before in the group's publications.

"Light the ground beneath them aflame and scorch them with terror," it states, painting the attacks as the way to avenge the death of Raad.

"Kill them on the streets of Brunswick, Broadmeadows, Bankstown, and Bondi. Kill them at the MCG, the SCG, the Opera House, and even in their backyards.

"Stab them, shoot them, poison them, and run them down with your vehicles. Kill them wherever you find them until the hollowness of their arrogance is filled with terror and they find themselves on their knees with their backs broken under the weight of regret for having waged a war against the believers, and by Allah's will, and then through your sacrifices, this Ummah will be victorious."

Many experts and government officials have warned that as IS loses territory in Iraq and Syria, it will lash out globally through attacks on western countries.

The magazine says Raad, 36, who was convicted in an an operation code named Pendennis and jailed for four-and-a-half years, was killed after being hit by shrapnel in the city of Manbij, near Aleppo.

His brother Ahmad Raad was also jailed in the 2005 plot to blow up the MCG, which was organised by mastermind Abdul Nacer Benbrika.

It says he died when "a piece of shrapnel struck him and tore his chest open".

It refers to Australia as "a land cloaked in darkness and corrupted by kufr, fornication, and all forms of vice".

Raad left Australia in 2013 after being released from jail and before the government had begun a comprehensive system of cancelling passports of those they suspected of planning to join the war in Syria.

The magazine says he was released from prison "more emboldened and more steadfast upon this path".

Raad was regarded as a major recruiter, helping take to Syria Adam Dahman, who eventually blew himself in a suicide bombing at a market in Baghdad.

The magazine says he became a local leader, being appointed "amir of the Faruq Dam and the surrounding villages".

It says he joined with the IS leader Abu Bakr al-Iraqi, better known as Haji Bakr, and "became one of his closest companions".

Iraqi was a senior IS military commander and top deputy to leader Abu Bakr al-Baghdadi, who was killed fighting moderate Syrian rebels in northern Aleppo in February 2014.